Correlation Between Altamir SCA and Altarea SCA
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Altarea SCA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Altamir SCA and Altarea SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Altarea SCA, you can compare the effects of market volatilities on Altamir SCA and Altarea SCA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Altamir SCA with a short position of Altarea SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Altarea SCA.
Diversification Opportunities for Altamir SCA and Altarea SCA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altamir and Altarea is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Altarea SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altarea SCA and Altamir SCA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Altamir SCA are associated (or correlated) with Altarea SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altarea SCA has no effect on the direction of Altamir SCA i.e., Altamir SCA and Altarea SCA go up and down completely randomly.
Pair Corralation between Altamir SCA and Altarea SCA
Assuming the 90 days trading horizon Altamir SCA is expected to generate 48.75 times less return on investment than Altarea SCA. But when comparing it to its historical volatility, Altamir SCA is 1.81 times less risky than Altarea SCA. It trades about 0.0 of its potential returns per unit of risk. Altarea SCA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,599 in Altarea SCA on August 24, 2024 and sell it today you would earn a total of 3,161 from holding Altarea SCA or generate 47.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Altamir SCA vs. Altarea SCA
Performance |
| Timeline |
| Altamir SCA |
| Altarea SCA |
Altamir SCA and Altarea SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Altarea SCA
The main advantage of trading using opposite Altamir SCA and Altarea SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Altarea SCA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altarea SCA will offset losses from the drop in Altarea SCA's long position.| Altamir SCA vs. Wendel | Altamir SCA vs. Eurazeo | Altamir SCA vs. ABC arbitrage SA | Altamir SCA vs. IDI SCA |
| Altarea SCA vs. Icade SA | Altarea SCA vs. Covivio SA | Altarea SCA vs. Mercialys SA | Altarea SCA vs. Gecina SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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